GCL-Poly Energy 3800

[winston]

The Board wishes to inform Shareholders and investors that the expected impairment loss for the financial year ending 31 December 2009 arising from the Acquisition, as announced on 16 November 2009, will be substantially reduced following a reassessment of the accounting treatment for the Acquisition.

The Board also wishes to announce that in the light of the above mentioned changes in relation to the expected impairment loss, the Company requires more time to finalise certain accounting issues on the financial statements of the Group for the year ended 31 December 2009, and the meeting of the Board due to be held on 3 March 2010 has been adjourned to 17 March 2010.

[winston]

Sold yesterday. From Dr. Check, The Standard HK:-

GCL-Poly Energy (3800) is another stock to consider. Beijing's sovereign wealth fund has a 20.09 percent stake in the power plant operator.


In January, the firm agreed to pay 854 million yuan (HK$971 million) for 70.19 percent of Konca Solar Cell, which makes and supplies polysilicon and wafers for the solar industry. GCL-Poly is actively seeking strategic acquisition opportunities.

UBS gives it a target price of HK$2.75, or 14 times its price-earnings ratio for 2011, on expectations that earnings will grow 232 percent this year and 51 percent in 2011.

GCL-Poly's shares fell from a peak of HK$3.84 last July to a support level of HK$1.79 last month. It still has upside after closing yesterday at HK$2.05.

http://www.thestandard.com.hk/news_deta ... 00304&fc=7

[winston]

Not vested.

GCL-Poly to Expand Overseas to Tap Solar Power Demand (Update2) By John Duce

March 18 (Bloomberg) -- GCL-Poly Energy Holdings Ltd., in which China’s sovereign wealth fund holds a stake, said it’s seeking solar-power projects overseas including the U.S. to benefit from global efforts to harness energy from the sun.

The Hong Kong-based maker of solar-cell parts, which completed its first solar farm on the mainland in December, is seeking opportunities in the U.S. and Europe and additional projects in China, Chairman Zhu Gongshan said today. GCL-Poly may start up some projects in the first half, he told reporters.

China may expand its capacity to generate power from sunlight by more than 13-fold by 2011. GCL-Poly is aiming to boost polysilicon output, ramp up wafer production capacity and work with China Investment Corp. to develop its solar-power business, the company said in its earnings statement yesterday.

“It certainly makes sense for the company to invest in solar-generating projects,” said Barbara Hon, an analyst at Everbright Securities Co. in Hong Kong. “It would mean that as well as producing polysilicon for cells it will be involved at the other end of the chain in producing electricity. The company already has one plant in China, and the U.S. and Europe are the big markets for solar power.”

GCL-Poly joined domestic rivals including Trina Solar Ltd. and New York-listed Yingli Green Energy Holding in setting up labs and offices in the U.S. to gain access to engineers and technologies that may not exist at home. The company picked San Francisco to be its U.S. headquarters and announced plans in September to establish an R&D center in Richland, Washington.

The shares of GCL-Poly fell as much as 6.1 percent today in Hong Kong trading, the most since Dec. 21, after reporting a full-year loss because of a one-time charge on an acquisition.

Venture With CIC

GCL-Poly expects a return of at least 12 percent on its investment in a $500 million solar-farm venture with CIC, Zhu said at the media briefing in Hong Kong. Projects with the sovereign wealth fund may start in the first half, he said.

CIC, which held almost $300 billion in assets at the end of 2008, acquired a HK$5.5 billion ($708 million) stake in GCL-Poly in November. The venture with CIC has enough capital to build as much as 500 megawatts of solar-power capacity, Chief Financial Officer Sam Tong told reporters.

GCL-Poly is also considering building at least one other R&D complex in eastern China, according to yesterday’s earnings statement.

Demand for polysilicon will be strong this year as governments encourage the use of solar energy and GCL-Poly plans to double the production of the main raw material in solar cells this year to about 15,000 metric tons, Zhu told reporters.

The shares of China’s biggest polysilicon producer were down 3.6 percent at HK$1.90 at 2:49 p.m., compared with the 0.2 percent decline in the benchmark Hang Seng Index.

http://www.bloomberg.com/apps/news?pid= ... CUFvwMCEp4

[investar]

Results:
http://www.gcl-poly.com.hk/Results_2009_Final_Eng.pdf

Decent growth in sales revs, interesting JV with CIC

I am doubting to invest here (above the 1.79 CIC entry price with stop below that)

Good idea?

[winston]

Not vested.

I'm still trying to find out why HSBC lowered the Target Price today, from HK$2.40 to HK$1.20.

[winston]

Vested.

The board of directors (the “Board”) of GCL-Poly Energy Holdings Limited (the “Company”) is pleased to announce that according to the preliminary statistics, the
Company’s average polysilicon production volume stabilized at over 1,000MT per month with total production volume of 3,112 MT for the first quarter of 2010, representing an increase of approximately 184.5% over the same period in 2009.

The Company and its subsidiaries (the “Group”) are able to further reduce polysilicon production cost to approximately US$34 per kg in March 2010, so that the Group was able to maintain gross profit margin of the polysilicon business at approximately 30% for the first quarter of 2010.

The Group expects to double its polysilicon production volume to 16,500 MT for the full year of 2010 with further technical upgrade. It also expects that polysilicon production cost will further decline to about US$30 per kg by end of 2010.

The Group believes that global demand for polysilicon will remain strong in the second quarter of 2010 while prices remaining at stable levels as well.

The Company completed the acquisition of an aggregate 70.19% of the equity interest in Konca Solar Cell Co., Ltd. (“Konca Solar”) on 30 March 2010. Konca Solar recorded encouraging results for the first quarter of 2010 with wafer sales volume of 77.8MW and gross profit margin of approximately 23%.

The Group believes that global demand for wafer will remain strong in the second quarter of 2010 with wafer prices maintaining at relatively high levels, thus providing a strong backdrop for the Group to expand its wafer operations.

After the Group’s Xuzhou Phase I wafer manufacturing facilities are fully ramped up, the Group’s annual wafer production capacity will reach 800MW by end of June 2010.

The Group is planning the expansion of the wafer capacity at Konca Solar as well as at the wafer plants in Xuzhou and Changzhou and expects annual production capacity to reach 2GW by October 2010 with annual production volume of 1.3GW for the full year of 2010.

Meanwhile, the Group is also actively planning to integrate the production of overhead materials into the wafer manufacturing process in order to further reduce wafer production cost.

http://www.hkexnews.hk/listedco/listcon ... 429260.pdf

[greenhoney]

if gross margins is at 30%, i wonder whats the nett margins are like? anything above 10% i think is amazing.

[winston]

Vested.

GCL-Poly May Build 500 Megawatts of Solar Farms in China to Meet Demand By John Duce

GCL-Poly Energy Holdings Ltd., in which China’s sovereign wealth fund holds a stake, may build solar farms with a total capacity of as much as 500 megawatts to help meet demand in the world’s fastest-growing major economy.

China’s largest producer of polysilicon, the main raw material used in solar cells, is also looking at setting up solar farms in the U.S., Europe and the Middle East and may make investment decisions on some projects this year, Chief Financial Officer Sam Tong said at a media briefing in Hong Kong today.

The solar-cell parts maker completed its first 20-megawatt solar plant in China in December and is seeking clean-energy projects overseas to benefit from global efforts to harness energy from the sun. Tong didn’t give a timescale or figure for GCL-Poly’s planned investment in China.

“Building generating capacity of between 400 megawatts and 500 megawatts would be feasible,” he said.

Investment in the 20-megawatt farm reached 420 million yuan ($62 million), Tong said. Costs vary for each project, he said.

GCL-Poly expects strong demand for polysilicon this year partly because of rising consumption in emerging markets including India, Tong said. The company said last month it expects to double production this year to 16,500 metrics tons.

China Investment Corp., the nation’s sovereign wealth fund, acquired a HK$5.5 billion ($705 million) stake in GCL-Poly in November.

http://preview.bloomberg.com/news/2010- ... emand.html

[winston]

Vested.

GCL Poly Energy Shares Rise After Starting Operations at Changzhou Factory GCL Poly Energy Holdings Ltd., in which China’s sovereign wealth fund holds a stake, rose the most in more than five months after starting operations at a plant in southern China.

Source: Bloomberg

[winston]

Vested.

VOLUNTARY ANNOUNCEMENT
INVESTMENT IN TWO SOLAR PROJECTS IN THE U.S.

The Board is pleased to announce that the Company, through its wholly-owned subsidiary, GCL Solar, entered into the following solar projects agreements:

(i) Agreement I dated 15 June 2010 with PsomasFMG, pursuant to which PsomasFMG will sell, and GCL Solar will purchase, the entire membership interest in A Solar. A Solar will develop solar photovoltaic electric generating systems with an aggregate nameplate capacity of 8.5MW at various sites located in and around Lancaster, California, U.S.; and

(ii) Agreement II dated 11 June 2010 with AMSOLAR, pursuant to which AMSOLAR will sell, and GCL Solar will purchase, the entire membership interest in AMSOLAR USD I, LLC (“AMSOLAR USD”). AMSOLAR USD
will develop a 1.2 MW solar photovoltaic project to be installed on campus rooftops and parking structures at the University of San Diego, U.S..

http://www.hkexnews.hk/listedco/listcon ... 617340.pdf